Morneau open to stablization changes

SASKATOON The federal government is making no commitments, but federal Finance Minister Bill Morneau says he is “open to considering” changes to a program aimed at providing financial assistance for provinces that experience an economic downturn.

That is likely welcome news for Saskatchewan Finance Minister Donna Harpauer, who is expected to raise the Fiscal Stabilization Program when she meets with Morneau and her provincial and territorial counterparts in the nation’s capital this week.

“Program funding is not sufficient for provinces that experience unexpected fiscal challenges, and the program needs to be more responsive to economic shocks and downturns,” Harpauer wrote in a prepared statement.

“Saskatchewan is calling on the federal government to make the necessary immediate improvements to fiscal stabilization,” the statement continued.

Harpauer was not available for an interview.

Harpauer wants the federal government to remove the $60-per-capita cap on stabilization payments, lower the qualifying threshold for non-resource revenue and make the changes retroactive to the 2015-16 fiscal year.

Those are the same requests made by the provincial and territorial premiers earlier this month, which have taken precedence over — but not simply replaced — Premier Scott Moe’s list of more combative postelection demands.

The new proposals are seen by the province as achievable in the short term compared to the longer fight over the equalization formula.

That is not good enough for the Saskatchewan NDP, which is accusing Moe of not doing enough on the equalization file. The NDP previously sued Ottawa over the exclusion of resource revenue from the formula; the Saskatchewan Party government later dropped the suit.

NDP Leader Ryan Meili called the government’s proposals “reasonable,” but questioned why Moe and Harpauer were not prioritizing the fight for a fairer equalization program, funds from which could be invested in government programs and reducing emissions.